Saturday, May 15, 2021

Playing the Circuit Breaker Lite 2021

 


With the introduction of the new Covid-19 measures (some call it Circuit Breaker Lite) on 16 May 2021, it introduces another buying opportunity for long-term investors.

Back in 2020, Covid-19 caused the STI to drop 31% over a span of 1.5 months. This drop took about 1 year to recover (see chart above).

With this introduction of Circuit Breaker Lite, how far the market will fall remains to be seen. If the previous drop is any indication, the full drop will take a while to play out. So now is probably too early to buy. 

But I believe this fall will not be as steep as the first one (ie. < 31%). Many reasons for this, primarily because now Singapore has vaccines and our supply chains remain resilient. 

Time will tell as always. Readying my ammo!

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